Kenedix to Buy Eight Properties in Japan From Prudential Unit

Kenedix Realty Investment Corp. (8972), a Japanese real estate investment trust, said it plans to buy eight buildings in Japan for 28.6 billion yen ($366 million) from a unit of Prudential Financial Inc. (PRU) to boost its portfolio.

Kenedix Realty, which has 274.9 billion yen of assets under management, plans to acquire four Tokyo office buildings and properties in cities including Nagoya and Sendai, according to the company’s statement. The sale of buildings by AIG Edison Life Insurance Co. will be completed by Dec. 26.

The purchase will boost the trust’s portfolio by about 10 percent to 82 buildings, the company said. Kabutocho Nikko Building across the street from the Tokyo Stock Exchange will be bought for 11.3 billion yen, accounting for about 40 percent of the total acquisition price, it said. Tokyo-based Kenedix forecast its assets will reach 284 billion yen by December and plans to expand its total assets to 400 billion yen in the mid to long term.

“Kenedix got a slightly better pricing,” said Yoji Otani, a real estate analyst at Deutsche Bank AG in Tokyo. “This transaction is in line with the company’s strategy.”

Kenedix separately reported today a 32 percent of gain in profit to 3.1 billion yen for the six months ended Oct. 31.

To contact the reporters on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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